Question 1: Shoprite nets $10 million from sale of Uganda, Madagascar and Nigeria units
South Africa’s Shoprite Holdings Ltd posted $10.27 million gain from the sale of its assets in Uganda, Madagascar and Nigeria as Africa’s largest fast-moving consumer goods retailer retreated from markets it has considered under-performing on the continent. The retailer, which is listed on the Johannesburg Stock Exchange (JSE) and cross-listed on the Namibian and Zambian Stock exchanges, revealed through its financial statements for the 53 weeks ended July 4 that its operations in Uganda and Madagascar which it had classified as “assets held for sale” yielded a combined net gain of $8.85 million, but declined to disclose the value for each transaction.
The article above refers to Shoprite selling off various stores across the African continent. Identify and discuss the corporate strategy that Shoprite is pursuing. Provide at least five examples/ extracts from the article to support your answer.
Question 2: South Africa’s corporate culture, and how heritage fits in
Amanda Porter, Head of Culture at Discovery says that corporate culture encompasses the values and behaviours that create a unique workplace. She says that an organisation’s culture influences and affects the way people interact, how knowledge is created and shared – and importantly, how people face challenges at work.
Q.2.1 The final component of Lee et al.’s organisational architecture is culture. Discuss how organisations express their culture through the use of a variety of manifestations. Provide examples from the article and from the company “Discovery” to support your answer.
Q.2.2 Organisational structure plays a critical role in the effective implementation of strategy. The span of control, among others, is a key component that determines organisational structure and design according to Lee et al’s organisational architecture. Elaborate on what is meant by span of control and discuss the issues that affect it.
Question 3: First Checkers ‘dark store’ to open doors soon
Checkers plans to open its first “dark store” later this year to support growing demand for its Sixty60 on-demand grocery app. A dark store is a retail outlet that exists exclusively to support on-demand deliveries. It does not have a store front or retail customers, but purely assists with order fulfilment. It will be in Bree Street in Cape Town’s central business district, and comes as the group considers the capacity of its store base to meet the growing demand from SA’s leading grocery app.
There are various considerations that organisations can use when evaluating strategies to determine hich are the most suitable. Using the information from the above case study, evaluate the appropriateness, desirability and validity of the differentiation strategy that Checkers is following.
Many companies invest and build capacity for creating economies of scale. Companies target expansion into new markets by efficiently using their potential and creating additional sustainable income opportunities. In light of this, there are various opportunities both in developed countries, where there is larger demand, and in developing countries where there is increasing demand. Companies need to target and plan their international growth strategy for success.
Q.4.1 Discuss the motives for businesses to expand internationally. (10)
Q.4.2 Michael Porter found that the success of nations and their individual business organisations were closely linked. National competitive advantage is determined by a combination of broad attributes, i.e., factor conditions; demand conditions; related and supporting industries; organisation strategy, structure and rivalry; and lastly Porter added government and chance events. (10)
By making use of examples, criticise South Africa’s competitive advantage as a country in relation to government and chance events.
Creative destruction: Out with the old, in with the new
Creative destruction describes the deliberate dismantling of established processes in order to make way for improved methods of production. Creative destruction is most often used to describe disruptive technologies. The term was coined in the early 1940s by economist Joseph Schumpeter, who observed real-life examples of creative destruction, such as Henry Ford’s assembly line.
Q.5.1 Briefly outline Schumpeter’s theory of creative destruction and provide three examples of either organisations that have disrupted the market, or industries that have been disrupted through creative destruction. (5)
Q.5.2 Briefly describe the bottom of the pyramid (BOP) process for developing business specifications. (2)
Q.5.3 Explain the key principles behind applied design thinking. (3)
Question 6: TymeBank appoints new CEO for South Africa
Digital banking group TymeBank has appointed a new chief executive officer for South Africa, as it makes a move to expand into other markets. Coen Jonker, the co-founder of Tyme and TymeBank, takes over as TymeBank’s CEO in South Africa, effective 1 July 2022. Jonker has vast retail banking, fintech and deal-making experience and expertise both in South Africa and in several Asian markets. TymeBank’s current CEO, Tauriq Keraan, moves to group executive: growth projects, responsible for leading Tyme’s establishment in new territories as part of the group’s geographic diversification strategy.
Strategic leaders need to visualise the organisation as a whole to be able to implement strategy across cross-functional activities in the organisation. Write an essay of 1 200 – 1 500 words in which you advise the new Tyme Bank CEO of the tasks that strategic leaders must fulfil when creating the integrated organisational system.
Answers to Above Questions
Corporate level methodology is characterized as a multi layered plan of an organization that is used by the heads of to accomplish explicit business objectives. There are various kinds of Corporate level techniques that can be used by pioneers, and this incorporate solidness system, extension methodology, conservation procedure, and blend procedure. In the given case situation, it is assessed that Shoprite holding has applied the conservation procedure in anaging its business activity. In the event of conservation technique, an association targets disposing of all the specialty units that arent productive to it.
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